FII(SH:601138) Orient Securities·2025-11-02 11:26Investment Rating - The report maintains a "Buy" rating for the company with a target price of 82.94 CNY, based on a 29x PE valuation for 2026 [3][11]. Core Insights - The company's AI server business is experiencing significant growth, with a notable increase in demand for 800G switches [2][10]. - The revenue and profit for the company reached historical highs in Q3 2025, with a revenue of 243.17 billion CNY, a 43% year-on-year increase, and a net profit of 10.37 billion CNY, a 62% year-on-year increase [10]. - The cloud computing segment is a major growth driver, with revenue growth exceeding 65% year-on-year in the first three quarters of 2025, and GPU AI server revenue growing over 300% year-on-year [10]. Financial Forecasts - The company is projected to achieve earnings per share (EPS) of 1.75 CNY, 2.86 CNY, and 3.61 CNY for the years 2025, 2026, and 2027 respectively, reflecting an upward revision from previous estimates [3][11]. - Revenue is expected to grow from 609.14 billion CNY in 2024 to 1,506.71 billion CNY in 2027, with a compound annual growth rate (CAGR) of 27% [5][10]. - The gross margin is projected to slightly decline from 8.1% in 2023 to 7.1% in 2027, while the net profit margin is expected to stabilize around 4.8% [5][10]. Market Performance - The company's stock price as of October 31, 2025, was 72 CNY, with a 52-week high of 83.88 CNY and a low of 14.3 CNY [6]. - The stock has shown strong performance, with a 108.03% increase over the past three months [6].